More plan sponsors looking for new adviser

More plan sponsors looking for new adviser
A Fidelity survey shows sponsors also want lower fees, more retirement expertise and a better investment lineup.
JUL 22, 2021

In a search for better employee communication and education, 34% of plan sponsors surveyed by Fidelity say they are looking to change advisers — more than double the 16% that were adviser shopping in 2020, and up from 18% in 2019.

Sponsors also are looking for lower stated fees, more retirement expertise and a better investment lineup, Fidelity said in a release detailing the results of its latest annual survey of plan sponsor attitudes.

“The scope of guidance and expertise that plan sponsors expect from their advisers continues to expand,” according to the Fidelity release. “Sponsors are looking for their adviser to have more expertise in helping minimize costs (46%), selecting and monitoring investment options for the plan (44%), and keeping them informed on regulatory changes and how to implement them (42%).”

In other findings, 68% of plan sponsors feel their employees are saving enough for retirement, up from 59% in 2020. However, 86% of plan sponsors believe that at least some of their employees are delaying retirement because of a savings shortfall, and 60% believe the pandemic had an impact on their employees’ decision to retire.

Adviser satisfaction, at 73%, and value, at 69%, remained high. But among smaller plans, the perception of adviser value was down 10% year-over-year.

The report is based on an online survey of 1,169 plan sponsors that was conducted during March.

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